After successfully coding my first set of backtesting programs with the IG Index–supplied “IT Finance Pro Real Time”, I would really appreciate some help from you all regarding the capital management sections and position size management….
I have poured over the Pro Back Test pdf file on the Capital Management section – but I cannot make head nor tail of the parameter definitions, and how to tailor these to model real trading on the IG Index platform.
http://www.prorealtime.com/en/pdf/probacktest.pdf
My coding is designed to work on the forex, risking a defined % of total equity (e.g. 2% per trade) but I guess that the coding can also work on less liquid markets.![Wink ;) ;)](data:image/gif;base64,R0lGODlhAQABAIAAAAAAAP///yH5BAEAAAAALAAAAAABAAEAAAIBRAA7)
My coding determines the number of pips from the trade entry position for the stop loss using a multiple of the average true range indicator.
The problem I have is that ProBackTest should be able to calculate the correct £/pip in order to risk only the 2% per trade, but I cannot grasp the parameter definitions sufficiently to control this. Please see thumbnails below...
Example to highlight the requirement: stop loss = 150 pips away from trade entry… Initial capital position = £20,000… 2% = £400…. £/pip = 400/150 = £2.67/pip
Your help is greatly appreciated, and I would love to post a concise instruction after our exchange for other users.
Rodin17
I have poured over the Pro Back Test pdf file on the Capital Management section – but I cannot make head nor tail of the parameter definitions, and how to tailor these to model real trading on the IG Index platform.
http://www.prorealtime.com/en/pdf/probacktest.pdf
My coding is designed to work on the forex, risking a defined % of total equity (e.g. 2% per trade) but I guess that the coding can also work on less liquid markets.
My coding determines the number of pips from the trade entry position for the stop loss using a multiple of the average true range indicator.
The problem I have is that ProBackTest should be able to calculate the correct £/pip in order to risk only the 2% per trade, but I cannot grasp the parameter definitions sufficiently to control this. Please see thumbnails below...
Example to highlight the requirement: stop loss = 150 pips away from trade entry… Initial capital position = £20,000… 2% = £400…. £/pip = 400/150 = £2.67/pip
Your help is greatly appreciated, and I would love to post a concise instruction after our exchange for other users.
Rodin17